KMX CEO DEPARTURE: CarMax, Inc. Stock Drops Another 20% on CEO Announcement – Investors Urged to Contact BFA Law about Pending Securities Class Action

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant drop in stock price due to potential violations of federal securities laws [1][2]. Company Overview - CarMax, Inc. is a leading retailer of used cars, which has recently faced legal challenges and stock price volatility [3]. Legal Proceedings - Investors have until January 2, 2025, to request to lead the case in the U.S. District Court for the District of Maryland, under the case caption Jason Cap v. CarMax, Inc., et al. [2]. - The lawsuit claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. Financial Performance - CarMax reported disappointing financial results for Q2 of fiscal year 2026, with a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [5]. - The net income for the second quarter was approximately $95.4 million, down from $132.8 million in the previous year [5]. Stock Price Movement - Following the announcement of poor financial results on September 25, 2025, CarMax's stock price fell by $11.45 per share, or about 20%, from $57.05 to $45.60 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 2025 outlook, led to an additional drop of over 15% in stock price [6].